2013 Maryland Code
INSURANCE
§ 23-307 - Cancellation charge; reinstatement charge


MD Ins Code § 23-307 (2013) What's This?

§23-307.

(a) A premium finance agreement may require the insured to pay a cancellation charge if a default in paying an installment results in the cancellation of an insurance contract listed in the premium finance agreement.

(b) A cancellation charge shall be:

(1) with respect to private passenger automobile or personal fire or liability insurance, equal to the difference between a delinquency and collection charge imposed under § 23-306 of this subtitle with respect to the installment in default and $15; and

(2) with respect to commercial automobile, fire, or liability insurance, 5% of the installment, not to exceed an amount equal to the difference between a delinquency and collection charge imposed under § 23-306 of this subtitle with respect to the installment in default and $100.

(c) If a notice of cancellation is withdrawn and the insurance coverage is reinstated, the premium finance agreement may require the insured to pay a reinstatement charge in the same amount as the cancellation charge that would have been paid if the cancellation had actually taken effect.

§ 23-307 - 1. Electronic payment fee

(a) "Electronic payment" defined. -- In this section, "electronic payment" includes payment by credit card or debit card.

(b) In general. -- A premium finance agreement may require the insured to pay an electronic payment fee if the insured elects to pay a premium finance company by means of an electronic payment.

(c) Limitation. -- A premium finance company may charge an electronic payment fee, which may not exceed $ 8, for actual expenses incurred by the premium finance company for the electronic payment.

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